S&P lifts Learning Care view to positive

S&P said it revised the outlook on Learning Care Group (US) No. 2 Inc. to positive from stable and affirmed its B corporate credit rating.

The B rating and 3 recovery rating on the company’s senior secured credit facility is unchanged. The 3 recovery rating indicates 50% to 70% expected default recovery.

The positive outlook reflects an expectation that Learning Care group’s leverage will continue to moderate over the next 12 months as a result of EBITDA growth related to improved capacity utilization and acquisitions, S&P said.

The positive view also considers an expectation that the company will not undertake any shareholder rewarding initiatives that would increase leverage, the agency said.

The company’s financial policy focuses on using excess cash flow to invest in growth initiatives, S&P said, and it hasn’t returned any cash to its financial sponsor since it was purchased in May 2014.

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